Toll road bill still causes contention

Author responds to fears of 'massive privatization,' more executive powers.

Author responds to fears of 'massive privatization,' more executive powers.

January 17, 2006|JAMES WENSITS Tribune Political Writer

SOUTH BEND -- House Bill 1008 does much more than allow the governor to lease the Indiana Toll Road to the highest bidder, according to state Rep. B. Patrick Bauer, D-South Bend. Bauer said the bill, which is scheduled to be heard by the House Ways and Means Committee today, is written so broadly that it would allow the leasing entity to establish restaurants, gas stations and hotels that could unfairly compete with existing businesses in communities along the road. It also would allow privatization of Indiana's Ohio River and Burns Harbor ports and other transportation modes, including airports, and gives authority to do so directly to the governor, Bauer said. "Once we pass this, we would be out of the picture," Bauer said of the legislature. "It's all in the hands of the executive branch." The way the bill is written, Bauer said, its broadness represents "a massive privatization potentiality" and transfers whatever state power there is to the governor. The bill's author, state Rep. Randy Borror, R-Fort Wayne, agreed that the bill would potentially allow the leasing of such intermodal facilities as Indiana's ports, public airports and transit facilities but said there is no intent to do that in the foreseeable future. Borror said he isn't sure whether the bill's language would cover the South Shore Railroad, the quasi-public commuter line that connects South Bend and Chicago. The Fort Wayne Republican disagreed with other portions of Bauer's interpretation of the bill, saying it contains no property tax exemption other than the one the state already possesses. The bill also does not create any tax-free zones or allow the entity leasing the road to build hotels, restaurants or gasoline stations, said Borror, but would allow updating of Toll Road service plazas. Bauer has been a staunch opponent of the Toll Road lease proposal. Now that he's seen the bill, he said, "there's a lot more to be opposed to." The bill gives privatization powers to the governor that he didn't have before and takes away any future oversight by the Indiana General Assembly, Bauer said. According to Bauer, the bill, if passed, would give whatever negotiation power the legislature has to the governor. "It's the continuing centralization of power in Indianapolis" and the executive branch. Borror disagreed with the contention the bill transfers power directly to the governor. Borror said he purposely wrote the bill so that it requires the state budget agency to review the agreement and requires the finance authority to conduct a public hearing. Staff writer James Wensits: jwensits@sbtinfo.com (574) 235-6353